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Entrepreneurs are often thought of as national assets to be refined, motivated and remunerated to the greatest possible extent.
Entrepreneurs can change the way we live and work. If successful, their revolutions may improve our standard of living. In short, in addition to creating wealth from their entrepreneurial ventures, they also create jobs and the conditions for a flourishing society.
Entrepreneurship capital is defined as 'a region's endowment with factors conducive to the creation of new businesses' and it exerts a positive impact on the region's economic output.
Regions with a higher level of entrepreneurship capital show higher levels of output and productivity, while those lacking entrepreneurship capital have a tendency to generate lower levels of output and productivity.
The impact of entrepreneurship capital is stronger than that of knowledge capital. Evidence indicates that entrepreneurial capital plays a very important role in the production function model presented.
The following are six reasons why entrepreneurship capital is important to the economy:
1. Entrepreneurs Create New Businesses
Path-breaking offerings by entrepreneurs, in the form of new goods and services, result in new employment, which can produce a cascading effect or virtuous circle in the economy. The stimulation of related businesses or sectors that support the new venture add to further economic development.
For example, a few IT companies founded the Indian IT industry in the 1990s as a backend programmers' hub. Soon the industry gathered pace in its own programmers’ domain. But more importantly, millions from other sectors benefitted from it.
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Businesses in associated industries, like call centre operations, network maintenance companies and hardware providers, flourished. Education and training institutes nurtured a new class of IT workers offering better, high-paying jobs. Infrastructure development organizations and even real estate companies capitalized on this growth as workers migrated to employment hubs seeking new improved lives.
Similarly, future development efforts in underdeveloped countries will require robust logistics support, capital investment from buildings to paper clips and a qualified workforce. From the highly qualified programmer to the construction worker, the entrepreneur enables benefits across a broad spectrum of the economy.
2. Entrepreneurs Add to National Income
Entrepreneurial ventures literally generate new wealth. Existing businesses may remain confined to the scope of existing markets and may hit the glass ceiling in terms of income. New and improved offerings, products or technologies from entrepreneurs enable new markets to be developed and new wealth created.
Additionally, the cascading effect of increased employment and higher earnings contribute to better national income in form of higher tax revenue and higher government spending. This revenue can be used by the government to invest in other, struggling sectors and human capital.
Although it may make a few existing players redundant, the government can soften the blow by redirecting surplus wealth to retrain workers.
3. Entrepreneurs Also Create Social Change
Through their unique offerings of new goods and services, entrepreneurs break away from tradition and indirectly support freedom by reducing dependence on obsolete systems and technologies. Overall, this results in an improved quality of life, greater morale and economic freedom.
For example, the water supply in a water-scarce region will, at times, force people to stop working to collect water. This will impact their business, productivity and income. Imagine an innovative, automatic, low-cost, flow-based pump that can fill in people's home water containers automatically.
Such an installation will ensure people are able to focus on their core jobs without worrying about a basic necessity like carrying water. More time to devote to work means economic growth.
For a more contemporary example, smartphones and their smart apps have revolutionised work and play across the globe. Smartphones are not exclusive to rich countries or rich people either. As the growth of China's smartphone market and its smartphone industry show, technological entrepreneurship will have profound, long lasting impacts on the entire human race.
Moreover, the globalization of tech means entrepreneurs in lesser-developed countries have access to the same tools as their counterparts in richer countries. They also have the advantage of a lower cost of living, so a young individual entrepreneur from an underdeveloped country can take on the might of the multi-million-dollar existing product from a developed country.
4. Community Development
Entrepreneurs regularly nurture entrepreneurial ventures by other like-minded individuals. They also invest in community projects and provide financial support to local charities. This enables further development beyond their own ventures.
Reason 4
Some famous entrepreneurs, like Bill Gates, have used their money to finance good causes, from education to public health. The qualities that make one an entrepreneur are the same qualities that motivate entrepreneurs to take it forward.
5. The Other Side of Entrepreneurs
Are there any drawbacks to cultivating entrepreneurs and entrepreneurship? Is there an “upper limit” for the number of entrepreneurs a society can hold?
Italy may provide an example of a place where high levels of self-employment have proved to be inefficient for economic development. Research reveals that Italy has in the past experienced large negative impacts on the growth of its economy because of self-employment. There may be truth in the old saying, 'too many chefs and not enough cooks spoil the soup.'
6. The Role of States
Regulations play a crucial role in nurturing entrepreneurship, but regulation requires a fine balancing act on the part of the regulating authority. Unregulated entrepreneurship may lead to unwanted social outcomes including unfair market practices, pervasive corruption, financial crisis and even criminal activity.
Paradoxically, a significantly high number of entrepreneurs may lead to fierce competition and loss of career choices for individuals. With too many entrepreneurs, levels of aspirations usually rise. Owning to the variability of success in entrepreneurial ventures, the scenario of having too many entrepreneurs may also lead to income inequalities, making citizens more – not less – unhappy.
The interesting interaction of entrepreneurship and economic development has vital inputs and inferences for policy makers, development institutes, business owners, change agents and charitable donors. If we understand the benefits and drawbacks, a balanced approach to nurturing entrepreneurship will definitely result in a positive impact on economy and society.
Staying Healthy
Unhealthy habits and underlying conditions contribute to interrupted sleep.
The world looks sunny after a great night's rest. But it's a different story when sleep is frequently interrupted. A lack of Zs makes it harder to think and easier to become irritated and anxious. In the long term, inadequate sleep increases your risk for obesity, high blood pressure, heart disease, diabetes, and even premature death. That makes it important to figure out what's interrupting your sleep.
1. It could be your age
'We see more interrupted sleep in older adults, although you shouldn't automatically blame frequent waking on your age,' says Dr. Suzanne Bertisch, an assistant professor of medicine at Harvard Medical School.
Sometimes older adults find they wake early in the morning, when they feel they should be sleeping. But that often reflects your schedule for sleeping and waking, not disrupted sleep.
'Your circadian rhythm, or sleep-wake cycle, may dramatically shift when you're older, causing you to get sleepy earlier. So if 8 p.m. is the start of your 'biologic' night, then your natural wake time may be around 4 a.m.,' Dr. Bertisch says.
2. It could be your lifestyle
One of the common causes of disrupted sleep is lifestyle, including any of the following habits:
Drinking alcohol within four hours of bedtime. A nightcap may help you fall asleep, but it also can interrupt sleep later in the night, and can also cause more trips to the bathroom.
Eating within a few hours of bedtime. Lying down with a full stomach can promote heartburn, which makes it harder to fall asleep and stay asleep.
Napping too much. Long naps in the afternoon or later make it harder to stay asleep at night.
Consuming too much caffeine. Caffeine (in coffee, tea, and sodas) blocks a brain chemical called adenosine that helps you sleep. Go light on caffeine-containing foods and drinks beyond the early afternoon.
Dr. Bertisch says changing these habits can help reduce disrupted sleep, sometimes quickly.
3. It could be your medication
Some medications can cause nighttime waking. Examples include
some antidepressants
beta blockers to treat high blood pressure
cold remedies containing alcohol
corticosteroids to treat inflammation or asthma
Dr. Bertisch recommends asking your doctor if your medication might be the culprit and if there's a different time of day to take it or another drug that won't interfere with your sleep.
4. It could be an underlying condition
Many chronic health problems can throw a monkey wrench into a sound sleep. These are some of the most common in older age:
Anxiety or depression. Worries or a depressed mood may make it hard to fall asleep and stay asleep.
Enlarged prostate gland (benign prostatic hyperplasia, or BPH). The urge to empty the bladder wakes men with BPH throughout the night.
Chronic pain. It's hard to stay asleep when you're hurting. 'And it's a two-way street. Sleep deprivation worsens next-day pain,' Dr. Bertisch says.
Neuropathy. Tingling, numbness, or pain in the hands and feet can cause frequent waking.
Sleep apnea. Loud snoring and brief awakenings during the night may be signs you have sleep apnea, which causes brief pauses in breathing at night and leads to daytime sleepiness.
How to cope
There's no need to live with the burden of disrupted sleep. Change your lifestyle if you feel it's interfering with your sleep, or talk to your doctor about ways to better treat or possibly investigate underlying conditions.
And practice good sleep hygiene:
Wake up at the same time each day.
Avoid electronic devices (which emit light and stimulate the brain) at least two hours before bed.
Sleep in a quiet, dark, cool space.
Get regular exercise (but not within an hour of bedtime).
If you are already practicing healthy sleep behaviors but still have trouble sleeping, consider cognitive behavioral therapy for insomnia (CBT-i). CBT-i is a proven way to treat insomnia through relaxation techniques, talk therapy, and adjustment of the amount of time you spend in bed. It works with your body's natural controllers of sleep to reset the brain to achieve healthier sleep.
The good news: you can boost sleep quality and regain that sunny morning feeling. 'When you sleep better,' says Dr. Bertisch, 'you're more likely to see improvements in your day-to-day function, concentration, energy levels, and quality of life.'
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